In Response to an Unanticipated Easing of Monetary Policy,the Fed

question 79

Multiple Choice

In response to an unanticipated easing of monetary policy,the Fed funds rate ________ at first,then ________ after 6 to 12 months.

• A)rises; returns most of the way to its original value
• B)falls; returns most of the way to its original value
• C)remains roughly unchanged; rises significantly
• D)remains roughly unchanged; falls significantly